U.S.-Greek Relations in One of their Greatest Eras Ever, Greece’s Ambassador Tells Qorvis Focus Washington
Prime Minister Samaras aims to advance common agenda for stability and prosperity during August 8 visit.
The Greek government’s top priority is to resolve its economic crisis, but Prime Minister Antonis Samaras will have a much broader agenda when he comes to the United States on an official working visit August 8, Greek Ambassador Christos Panagopoulos told Qorvis’ Focus Washington.
“We are going through one of the most great eras of Greek-American relations,” Panagopoulos told Focus Washington host Chuck Conconi. “We would like to promote our common agenda together.”
A strategic ally
Greece is working through its economic crisis with the help of its European Union partners and allies like the United States, but the Greek government also wants to keep focus on the security situation in the eastern Mediterranean, where Greece is plays a critical role.
“Despite the economic crisis, Greece is a pillar of stability in the eastern Mediterranean,” Panagopoulos said, and, with Israel, its greatest friend in the region.
“If you have a look at the area, it is one of the most crucial neighborhoods, and you see the situation in Egypt and Syria. There are problems all over. Greece is the oldest member of NATO and the European Union in the area, so we feel somehow a special responsibility to bring in other parts of the western Balkans, for instance, to the Euro-Atlantic structures and again help our American and other partners to bring peace, stability, and prosperity to the area.”
Confronting the economic crisis
Prime Minister Samaras will also discuss the state of the Greek economy during his visit. Greece has undertaken a series of structural reforms and made drastic cuts to the public sector.
“We are implementing are reforms across the board,” Panagopoulos said. “We are trying to put in order our national finances, and that means cuts all over from the public sector—which, by the way, is not that much overinflated as some international media suggest, but we do need very badly some reforms. Then, we have a large privatization program underway way right now.”
The privatization program has slowed in large part because the values of public property and enterprises are depressed. The government would like to sell these properties at something closer to what it considers their real value.
“So the political apparatus is very reluctant to go out and sell public property where the prices are not what you could expect. So you need money, you have to get rid of your excess public property, but the moment may be not the most appropriate,” the ambassador said.
Greece is carrying out all these reforms in the face of an overall unemployment rate of 26 percent and a youth unemployment rate of more than 50 percent, which Panagopoulos calls “the most tragic dimension of the economic crisis.”
The effort has not been without its political fallout, and Greece has been the scene of numerous protests and demonstrations.
“In an open democratic society,’ says Panagopoulos, “there is a limit to what you can ask from the citizens. In a dictatorship, you can go and say, ‘I decide; let’s do it.’ But in an open democratic society, you cannot do these things: Every other week, go back to your constituency and say we have to cut this and this.”
A shift from austerity to growth
There appears now to be a growing point of view in the international financial community that Greece should shift away from austerity and emphasize growth.
“Too much austerity, that’s what they say—the most appropriate people, IMF, you know, openly right now,” says Panagopoulos. “They criticize their first recipe for the salvation of the Greek economy. We in Greece, we’ve lived through this, and it is really very tough.”
The first priority of the government is growth policies, says the ambassador, “so we can create new jobs and absorb all these million and a half people that lost their jobs during the years of the crisis. It’s a very difficult thing. We ask our partners to be supportive, and there are some actions coming from our European partners.”
The myth of aid to Greece
Panagopoulos describes the notion that Greece is receiving donations of money as “a myth.”
“Nobody is donating money to Greece up to now. They give you nice loans, some of our partners take profit out of this as we speak, while Greece faces all of these great difficulties…. They give us loans, and they restructure the debt.”
transcript
Chuck Conconi: Welcome to Focus Washington, I’m Chuck Conconi, and my guest today is Greek Ambassador Christos Panagopoulos. Ambassador, thank you for being here today.
Ambassador Panagopoulos: It’s a pleasure to be here.
Conconi Panagopoulos: Now of course, there are many things to talk about, but one of the things that’s been so much in the news is the economy, the crisis that has existed there. Has too much austerity been demanded of your government?
Ambassador Panagopoulos: First of all, I would like to have Greece in the epicenter of interest for another reason, but unfortunately it has been the economic crisis which has been going on for about three to four years in my country. Before that, let me tell you, Greece was a success economic story. We have been in the most exclusive club, the EuroZone, and we have been doing pretty well, having an annual growth average of three percent (3%). But the crisis was important to my country. You remember in 2008, the big economic crisis, then at some point we had been cut off from the international markets. Then, this crisis took some tragic dimensions.
Too much austerity, that’s what they say—the most appropriate people, IMF, you know, openly right now. They criticize their first recipe for the salvation of the Greek economy. We in Greece, we’ve lived through this, and it is really very tough. I cannot…
Conconi: What measures are you putting into place to correct this situation?
Ambassador Panagopoulos: Everything. We are trying to implement, and I have to tell you something from the beginning: In an open democratic society, there is a limit to what you can ask from the citizens. In a dictatorship, you can go and say, “I decide; let’s do it.” But in an open democratic society, you cannot do these things: Every other week, go back to your constituency and say we have to cut this and this. So what we are implementing are reforms across the board. We are trying to put in order our national finances, and that means cuts all over from the public sector—which, by the way, is not that much overinflated as some international media suggest, but we do need very badly some reforms. Then, we have a large privatization program underway way right now. The problem is we are trying to sell public property when this is somehow devaluated. So the political apparatus is very reluctant to go out and sell public property where the prices are not what you could expect. So you need money, you have to get rid of your excess public property, but the moment may be not the most appropriate.
Conconi: Well, the situation there has caused a lot of unrest, particularly with young people. I think I saw the rate was fifty percent unemployment. Is there any way that corner can be turned?
Ambassador Panagopoulos: This is the most tragic dimension of the economic crisis. We have 26-[percent] plus unemployment for the general labor force, and the number to the youth you refer to is dramatic—more than 50 percent. So, the first priority of the government is growth policies, so we can create new jobs and absorb all these million and a half people that lost their jobs during the years of the crisis. It’s a very difficult thing. We ask our partners to be supportive, and there are some actions coming from our European partners. We need more of these not to donate money, because this is a myth. Nobody is donating money to Greece up to now. They give you nice loans, some of our partners take profit out of this as we speak, while Greece faces all of these great difficulties. Some of the partners giving the loans are making profit, so nobody is giving money to us. They give us loans, and they restructure the debt. That means, let’s say, if you have five years to repay that back, you ask them, “Do you want to lose all your money or to take instead of five, ten years?” The numbers are not that sure but just to give you a dimension of what’s going on.
Conconi: Well, now your Prime Minister is coming to visit the president, President Obama. Will he be coming for economic assistance, or will that come under discussion?
Ambassador Panagopoulos: Economic assistance—we don’t get any from the United States. But let me tell you, we have been working for this visit for quite some time. Bilaterally, the United States and Greece, they share a lot of things. We are going through one of the most great eras of Greek-American relations. Let me tell you that despite the economic crisis, Greece is a pillar of stability in the area, in the eastern Mediterranean. If you analyze things, if you take out probably Israel, Greece is the most friendly country to the United States, and we would like to promote our common agenda together. So economy, yes, is going to be discussed. The United States through the IMF participates in this program for the Greek economy. But directly, we can explore things. Assistance we don’t get from the United States.
Conconi: Well you’re strategically located, of course, in the Mediterranean, and that’s part of the agreement I assume also they’ll be discussing with the president.
Ambassador Panagopoulos: Absolutely, because if you have a look at the area, it is one of the most crucial neighborhoods, and you see the situation in Egypt and Syria. There are problems all over. Greece is the oldest member of NATO and the European Union in the area, so we feel somehow a special responsibility to bring in other parts of the Western Balkans, for instance, to the Euro-Atlantic structures and again help our American and other partners to bring peace, stability, and prosperity to the area.
Conconi: As complex as everything is there right now. Ambassador, thank you so much for being here today.
Ambassador Panagopoulos: Thank you for having me.
Conconi: I’m Chuck Conconi, and this is Focus Washington.
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